Weak dollar good long-term tiffany gold
No matter the precious metals such as gold and silver in the past to investors how much the profits. At present people care about most or its future ttiffany lucida rends and investment value. In order to clear up the thoughts, it is necessary to review the gold in the history of the two rounds of the bull market--
After world war ii for more than half a century, the gold through two round big bull market. The first round, after the second world war, the world tiffany heart earrings trade is growing rapidly, but in the process, the us trade deficit, the economy weakened relative strength, gold reserves also reduce the amount. The government has responded to the situation, Nixon in 1971 dollars with the gold decoupling, announced that sustain every ounce of tiffany pearl bracelet gold to $35 of the official price of the bretton woods system began to collapse. After 10 years, gold prices surged to about 20 times.
The second round, at the beginning of this century, with "compound", as a representative of the four emerging economies, and rapid rise as a representative tiffany bracelet of the United States is developed economies face financial and trade double deficit, savings insufficiency, the excessive consumption, external debt, a series of threat in the international tiffany engagement rings status is $drag. Gold is favored by money, never again to $300 per ounce level, all the way back in the wild, exceeded $1500 / ounces of historic highs.
However, only to supply and demand and explain in two rounds of the gold bull market huge or it is not enough. Gold in almost half a century to appear moretiffany s than two wheels, the bull market has had appeared the United States at the beginning of the economic downturn, and international status of the dollar is questioned so of the case.
In the 80 s, the world economy into a good development tiffany jewellery period. After the substantial depreciation of the dollar, strong up gradually, ACTS as a world currency role. Gold is no longer, began Sunday for 20 years or so, until the price return in tiffany August 1999 gold prices have hit $251 an ounce of a bear market the lowest price.
At the beginning of this century, the balance of the world economy and a happened tilt. Emerging countries through the export and investment pulled way rapid economic development. At the same time, the United States is to slow down the pace of economic growth, the relative strength of emerging economies is not only has weakened, a tiffanys.co.uk German, French, British and other developed countries also less than ever. The United States to keep inflation low and to international capital attraction but adopt of a strong dollar policy questioned, the dollar after five years in the last fall back. After the financial crisis, the tiffany wholesale United States in order to stimulate the economy to the quantization of large-scale twice loose policy. Although the dollar because economic incentive plan appeared to rebound, but eventually in brief the fed's low interest rates and the dollar policy at full speed of the double start managers under pressure, to return to the games. In the process, the dollar and Treasury bonds is questioned, and tiffany logo as a credit important hedge gold was even more popular, and constantly refresh record high prices.
Say so, America's monetary policy and the dollar to gold prices long-term trends will produce vital role. Due to the rise of emerging economies in the tiffany hall world economy expected to occupy the map of greater length, the dollar is likely to maintain the weak pattern. Standard chartered forecasts, by 2016, the dollar will fall to 5.45 yuan RMB, means that the yuan appreciation in the basis is around 17%.
In recent years, through the way such as trade surplus accumulated a large foreign exchange reserves emerging countries, in the face of a weak dollar, certainly will will be in the United States national debt and assets other than dollars, expand tiffany careers more investment channel, and gold will probably is the national central bank one of important consideration. In fact, in the past 10 years, with the fall in the dollar and gold prices rise, gold etfs open quantity also presents the sustained and rapid growth situation, reflect the gold investment demand on the rise.
In addition, the United States for economic recovery to take care of the low interest rate policy, and emerging countries and the European Union to contain inflation take the interest rate hikes, making the dollar and other currencies spreads continued tiffany cufflinks uk to exist and even expand, make to the charm of investment $guest weakening. Considering the dollar and gold negative correlation between the weak dollar, gold prices to it for a long time is positive. And the dollar's low interest rate environment, and has also helped hold the opportunity cost of gold, thus adding gold to reduce as investment tools appeal.
Therefore, in the next few years, the U.S. monetary policy discount tiffany and the long-term trend of $emerging countries, foreign exchange reserves of configuration, and from traditional gold consumer demand, will serve as a bull market of this round of big can go too far important reference.